True or False: A contractor who opts to place his license in an inactive status must still submit proof of insurance coverage.

A contractor who places their license in an inactive status is not required to submit proof of insurance coverage. An inactive license indicates that the contractor is not currently engaged in construction activities and thus does not have the same obligations that active contractors do, including maintaining liability insurance. The proof of insurance is typically a requirement for maintaining an active license because it protects both the contractor and the public in case of accidents or damages arising from construction work. Therefore, once licensed in an inactive status, the contractor is relieved of this particular requirement, as they are not performing work that would necessitate such coverage. This distinction is crucial for contractors to understand in order to comply with state regulations and manage their business effectively.